Facing Increased Costs, 64% of Medicare Beneficiaries Express Higher Confidence in the Future of Medicare Under a Trump Administration

Rhea-AI Summary

eHealth's latest research reveals significant changes in Medicare costs and beneficiary sentiments during the Annual Enrollment Period. The average premium for Medicare Part D drug plans has increased 17% compared to last year. Survey findings show that 64% of Medicare beneficiaries feel more confident about Medicare's future under Trump's administration, with 72% believing he will prioritize their needs. Beneficiaries' top priorities include lowering drug costs, reducing out-of-pocket expenses, and strengthening Medicare Advantage. Notably, 79% of enrollees report changes in their current plan costs or benefits, while 87% feel more confident selecting plans with licensed agent assistance.

Positive

• 87% of beneficiaries report increased confidence when working with licensed agents
• High engagement rate with 88% of beneficiaries reviewing coverage options
• Strong customer trust indicated by 72% confidence in future policy priorities

Negative

• 17% increase in average Medicare Part D drug plan premiums
• 79% of enrollees facing changes in current plan costs or benefits

Insights

Market Research Analyst

The 17% increase in Medicare Part D premiums signals significant market pressure that could impact eHealth's business dynamics. With 88% of beneficiaries reviewing coverage options and 63% planning to switch plans, this presents both an opportunity and challenge for EHTH's revenue stream. The high rate of plan switching could drive increased broker commissions, but rising costs might also push consumers toward lower-premium plans with reduced broker compensation.

The survey's political findings, showing 64% confidence in Trump's impact on Medicare, could influence market dynamics. However, the more actionable metric is that 87% of beneficiaries value licensed agent assistance, validating EHTH's business model. The reported widespread plan changes affecting 79% of current enrollees suggests a potentially active enrollment season, which could boost transaction volume.

eHealth research examines costs & trends midway through Medicare's Annual
Enrollment Period and outlines beneficiaries' priorities for President-elect Trump

AUSTIN, Texas, Nov. 19, 2024 /PRNewswire/ -- New original research from eHealth, Inc. (Nasdaq: EHTH), a leading online private health insurance marketplace, finds that the average premium for Medicare Part D drug plans selected by beneficiaries in the first half of Medicare's Annual Enrollment Period is up 17% from a year ago.

Survey data included in eHealth's report show that 64% of Medicare beneficiaries are more confident in the future sustainability of Medicare based on the outcome of the presidential election. Seventy-two percent (72%) are confident President-elect Trump will prioritize their needs. Their top-three priorities for the incoming administration are lowering drug costs, lowering out-of-pocket expenses, and strengthening Medicare Advantage.

"Midway through Medicare's Annual Enrollment Period, many beneficiaries are grappling with significant cost increases and changes to their benefits, forcing them to shop for new plans," said eHealth CEO Fran Soistman. "It can be challenging to choose the right Medicare plan for your personal needs and budget. However, as shown in our report, almost nine-in-ten beneficiaries say they feel more confident selecting a new Medicare plan when they work with a licensed health insurance agent."

Additional highlights: 

• 79% of Medicare Advantage and Medicare Part D plan enrollees say costs or benefits are changing under their current plan
• 88% have already begun reviewing their coverage options, while 63% of these say they have enrolled, or will enroll, in a new Medicare plan for 2025
• 87% say that working with a licensed agent increases their confidence when selecting a Medicare plan

Read the full report. 

Medicare's Annual Enrollment Period for 2025 coverage is scheduled to conclude on December 7, 2024. eHealth's report is based on an analysis of tens of thousands of Medicare plans selected through eHealth in the period from October 15 through November 8, 2024. Survey findings are based on a poll of Medicare beneficiaries drawn from the general population and conducted through a third-party survey vendor. For more information, refer to the methodology section of the report.

No information relevant to eHealth's financial performance should be drawn from this report. Like other insurance brokers, eHealth is compensated on a fixed per-member basis for Medicare Advantage and Part D plans, as regulated by the Centers for Medicare and Medicaid Services.

About eHealth (NASDAQ: EHTH) 
We're Matchmakers. For over 25 years, eHealth has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford. As a leading independent licensed insurance agency and advisor, eHealth offers access to over 180 health insurers, including national and regional companies. 

For more information about eHealth, visit ehealth.com or follow us on LinkedIn, Facebook, Instagram, and X. Open positions can be found on our career page.  

Media inquiries: pr@ehealth.com 

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SOURCE eHealth, Inc.

FAQ

How much have Medicare Part D drug plan premiums increased in 2024 according to EHTH?

According to eHealth (EHTH), Medicare Part D drug plan premiums have increased by 17% compared to the previous year, based on plans selected during the first half of Medicare's Annual Enrollment Period.

What percentage of Medicare beneficiaries are confident in Trump's administration for Medicare's future?

64% of Medicare beneficiaries expressed higher confidence in Medicare's future sustainability under Trump's administration.

What are the top priorities Medicare beneficiaries want addressed according to EHTH's survey?

According to eHealth's survey, the top three priorities are lowering drug costs, lowering out-of-pocket expenses, and strengthening Medicare Advantage.

When does the Medicare Annual Enrollment Period for 2025 coverage end?

The Medicare Annual Enrollment Period for 2025 coverage is scheduled to conclude on December 7, 2024.